In the world of posh cosmetics, two firms have long dominated.
On one side of the Atlantic is France's L'Oréal, owner of swanky labels such as Lancôme,
as well as drugstore stalwarts such as Maybelline.
On the other side is America's Estée Lauder,
home to a range of high-end brands typically found in department stores.
Lately, however, Lauder has been looking dishevelled.
The American company's market value, having shot from $16bn in 2010 to $133bn in 2021,
has since slid back to $31bn—a seventh of L'Oréal's figure.
Its sales in 2025, at $14.7bn, were down by 17% from their peak four years earlier,
even as the beauty business as a whole has boomed.
In pursuit of a glow-up, Lauder is spending big:
it is said to be planning a takeover bid for Puig, a Catalan beauty firm,
that will cost it around $6bn.
A deal may add some gloss to the business,
but will not do much to fix its deeper flaws.
Lauder's success in the 2010s was thanks largely to China's booming demand for high-end cosmetics.
Its wares became popular in the country's daigou trade,
in which shoppers buy products in bulk abroad (often at duty-free outlets)
and resell them at home for a profit.
Flush with cash, the company went on a shopping spree.